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How does the recall cost structure work? The naive approach has them paying the car owners back for the full market value of the cars (which is probably higher
by pdpi 11y ago
How does the recall cost structure work?
The naive approach has them paying the car owners back for the full market value of the cars (which is probably higher than is warranted). Assuming $20k per vehicle (which, for the models in question, is lower than the actual prices), that's $10B on the cars alone. Add to that the cost of the recall itself, plus whatever fines, and losing $17B market cap doesn't seem out of proportion.
- a3n 11y ago> which is probably higher than is warranted Why is it higher than warranted? They sold customers something that wasn't there, a diesel marketed as clean tech, when in reality it was 40 times dirtier than the law allows. And it wasn't a design defect, like for example the GM ignition switch, it was designed and engineered to do exactly what it does, and exactly the opposite of what was sold, and exactly the opposite of what the law requires. Full refund is entirely appropriate (IMO), in addition to fines and jail that may (or may not) result.
- arcticbull 11y agoHonestly it looks like all they have to do is enable full emission-control all the time, so a quick software update should have all the cars back on the road right? Clearly the cars can pass EPA emissions requirements.
- cpwright 11y agoThey'll be allowed back on the road; but you can bet that there will be backlash about them losing performance because of it.
- BashiBazouk 11y agoBacklash, as I will never buy another car from Volkswagen Group. I own one of the affected models and if all they do is a software update that turns it in to a gutless wonder with mediocre mileage they will lose quite a few otherwise devoted customers, possibly permanently. Lots of owners love their TDIs. Mine has been a great car. I think this goes beyond cynical corporate profits. A beloved technological possession is likely to be taken away or neutered. Once they go beyond disappointment and approach heartbreak, spurn kicks in.
- jessaustin 11y agoDo you mean to imply that reduced performance will upset you more than causing 25x the smog that the law allowed?
- BashiBazouk 11y agoI would say the one who automatically tosses out the highest number in a possible range is the one doing the implying... Edit: Heh. Changing the 40X to a 10X, eh? Nice... Edit2: Now 25X. Really, dude?
- deleted 11y ago[deleted]
- jessaustin 11y agoAre you now implying that there is some "smog multiplier" below which you are more upset about reduced performance? What is that multiplier? How many asthmatic children are required for your driving satisfaction? I have no explanation for your reading difficulties.
- BashiBazouk 11y agoI'm implying you are asking a leading question and pulling some serious sleaze editing your posts to make sure my reply does not match up. For the record, I can be motivated by multiple parameters at the same time as it is in this case. I'm looking for the performance/mileage/emissions/cost sweet spot that I thought this car held when I bought it. I'm not hung up on the binary opposition that you seem to be accusing me. As for the hysterical save the children crap and ad hominem, I'm sure you are quite proud of yourself for coming up with it... For the record, this is the post I am responding to should this poster continue his questionable editing habits: "Are you now implying that there is some "smog multiplier" below which you are more upset about reduced performance? What is that multiplier? How many asthmatic children are required for your driving satisfaction? I have no explanation for your reading difficulties."
- 11y ago
- toyg 11y ago> Clearly the cars can pass EPA emissions requirements. Yeah, going slower though...